2018 Preliminary Budget For Board Review

Transcription

1 2018 Preliminary Budget For Board Review

2 1) Have a balanced budget using reasonable revenue and expense expectations. 2) Other than in exigent circumstances adhere to the tax cap. 3) Maintain a NY State Comptroller's rating of "not in fiscal stress. 4) Remain debt free.. 5) Maintain a minimum of $15,000,000 general fund surplus (i.e. not otherwise earmarked). The estimated current surplus balance is about $ ) Over the course of the next four years, reduce the application of General Fund surplus applied to the following year's budget to $1,500,000 (< 2% of the General and Social Services budgets).

3 1) Under the tax cap for the seventh straight year - of $498,000 by about $10,000. Meeting the CAP will allow for state reimbursement of Raise the Age Costs. 2) The average tax rate increases by $.16/$1,000 of assessed value or 1.18% from 2017 (about $15.00 per average residence). Individual town rates will vary depending on equalization rates and assessed value totals. 3) Taxable values are up eight-tenths (.82%)of one percent. 4) The County remains debt free. 5) Maintains a NY Comptroller's rating of "not in fiscal stress. 6) Maintains our repaving and equipment replacement programs for the County Road system. 7) For the first time in many years, increased interest rates on invested funds has provided a significant benefit to revenue.

4 8) Traffic Diversion Program revenues will help in the reduction of property taxes. 9) We are now operating a school based Mental Health Service in the Norwich, Otselic Valley and Oxford School Districts. We have applied to open a clinic at Chenango Memorial Hospital. 10) Our self funded health plan has a 2018 cost increase of just 3.7% compared to the national average of 4.3%. 11) All 2017 programs are continued in ) Spending is up $791,000, up.88% from 2017 s 89.5 million spending level and only 4% from 2013.

5 13) Revenues, continue to be at very at robust levels. 14) Lessens the application of 2017 General Fund Surplus toward reducing the 2018 budget by $150,000 to $1,900,000. This is the seventh consecutive reduction from the $3,683,000 applied to balance the 2011 budget. 15) Positions us to reduce the application of General Fund surplus by $150,000 per year over each of the next three years to reach a target application of $1,500, ) Nearly 40% of our local real property tax levy of 25 million goes to Albany to support Medicaid. Notes: A) Subject to Board of Supervisors action/revision B) Subject to minor adjustments until public filing date of 11/15/17

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9 Year end Fund Balance (50%) Operating Deficits (10%) Cash position (20%) Short term debt (10%) Fixed costs (10%)

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12 Chenango County Fiscal Score (Weighted)

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15 COMPARING UPSTATE NEW YORK S JOB GROWTH WITH THE REST OF THE U.S.

16 TAX FOUNDATION Top Ten Worst 2018 State Business Tax Climate Index Ranks and Component Tax Ranks Individual Income Tax Rank Overall Rank Sales Tax Rank Property Tax Rank Unemployment Insurance Tax Rank New Jersey New York California Vermont District of Columbia Minnesota Ohio Connecticut Maryland Louisiana Note:A rank of 1 is best. 50 is worst. Rankings do not average to the total. States without a tax rank equally as 1. D.Cs score and rank do not affect other states. The report shows tax systems as of July 1, 2017 (the beginning of Fiscal Year 2018). Source: Tax Foundation. "2018 State Business Tax Climate Index"

17 Labor Force Trends In New York State Excerpts from NYS Comptroller s Report September Throughout the State, change in the labor force has been uneven.while the Long Island and New York City regions saw increases in the last five years, the rest of the State experienced declines, as shown in Figure 4. The Hudson Valley labor force count was essentially unchanged. Four upstate regions saw particularly significant declines of more than 5 percent, including a drop of more than 8 percent or nearly 27,000 workers in the Southern Tier. While the Southern Tier s unemployment rate decreased by almost three percentage points, its number of employed workers fell by over 5 percent.

18 Labor Force Trends In New York State Population aged 16 to 24 years exhibited no growth over the past five years, with only a slight increase in the number of workers in this age group. Similarly, for the age groups that represent the largest shares of the labor force (those aged 25 to 64 years), combined growth in the population and the number of workers was very small, including a decline among those in the age group.

19 Labor Force Trends In New York State Every region in New York had significant growth in the population aged 65 and over, with the population in this group the only one growing in many of the regions.while the downstate regions realized growth in three of the four age groups, there were no regions that exhibited growth across all ages. In five of the State s 10 regional labor markets (all upstate), the number of people working was smaller in 2016 than five years earlier. Continuing shrinkage of the workforce in regions of New York that have experienced such declines in recent years poses challenges to achieving overall economic growth in these areas and ensuring the long-term vitality of local communities. This trend could also result in fiscal and budgetary issues for the State and local governments.

20 Chenango County Constitutional Tax Limit 10 Year Comparison of Percent Exhausted 75 Percent Exhausted

21 Chenango County 10 Year Tax Rate Comparison Tax Rate Per Thousand Tax Cap Imposed Year Tentative

22 Millions Years Tentanive

23 Billions

24 Chenango County Ten Year Comparison Of Actual Expense To Revenue General Fund Millions Revenues Expenses Year

25 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $ Applied Fund Balance Appropriation Of Surplus During The Fiscal Year

26 Transportation 21.16% Culture And Recreation 0.16% Economic Assistance 30.07% CHENANGO COUNTY 2018 TENTATIVE BUDGET APPROPRIATIONS Public Safety 12.63% Education 1.48% Home And Community Svces 3.68% Health 11.32% CHENANGO COUNTY APPROPRIATION COMPARISON Fringe Benefits 12.51% General Government 7.00% Culture And Recreation 0.16% Economic Assistance 30.52% Transportation 21.02% Public Safety 12.27% Education 1.45% CHENANGO COUNTY 2017 ADOPTED BUDGET APPROPRIATIONS Home And Community Svces 3.56% Health 11.71% Fringe Benefits 12.39% General Government 6.92%

27 Federal Aid, 12.29% Other, 1.79% Applied Surplus, 2.96% State Aid, 15.52% CHENANGO COUNTY 2018 TENTATIVE BUDGET REVENUES Real Property Taxes, 29.57% CHENANGO COUNTY REVENUE COMPARISON Departmental Income, 19.60% Sales Tax, 15.90% Other Tax Related Items 2.37% Federal Aid, 12.96% Other, 1.82% Applied Surplus, 3.03% Real Property Taxes, 27.60% State Aid, 16.28% CHENANGO COUNTY 2017 ADOPTED BUDGET REVENUES Sales Tax, 15.92% Departmental Income, 20.02% Other Tax Related Items 2.37%

28 CHENANGO COUNTY 2018 TENTATIVE BUDGET CHENANGO COUNTY 2018 PROPERTY TAX RATE DISTRIBUTION HOW THE COUNTY TAX LEVY IS DISTRIBUTED BASED ON AVERAGE TENTATIVE COUNTY RATE FOR EVERY ONE THOUSAND DOLLARS IN TAXABLE FULL VALUE Economic Assistance $ 6.70 Public Safety County Roads & Transportation $ 2.18 $ 2.54 General Government $ 0.39 Health $ 0.88 Education $ 0.41 Home & Community Services $ 0.42 Economic Development $ 0.05 Culture & Recreation $ 0.05 AVERAGE COUNTY RATE PER THOUSAND $ Social Service Programs 49.21% Education 3.01% Culture & Recreation 0.37% Economic Development 0.36% General Government 2.88% Home & Community Services 3.04% Health 6.45% County Roads & Transportation 18.66% Public Safety 16.02%

29 CHENANGO COUNTY TRENDS OF STATE SIN TAX REVENUES THAT OFFSET MANDATES OFF TRACK BETTING TOBACCO SETTLEMENT VLT TRIBAL COMPACT Est. Note: a one time Tobacco NPM adjustment of 729K was received in 2016 in addition to the regular payment.

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31 Counties in New York differ greatly from other local governments across the state due to the large number of state programs counties must administer and fund with local resources. Counties are required under New York State law to implement and finance more than 40 state defined and controlled programs including: Medicaid Public assistance for adults and families Indigent criminal defense legal services Child welfare, Preschool special education...and dozens more. In most states, counties are not required to pay for these types of programs to the same degree as counties in New York. In return for administering and paying for these mandated services, the State partially reimburses counties, but the shortfall is made up by county property taxpayers.

32 Mandated programs require a county to strictly adhere to rules set by the state, which define the scope, eligibility, frequency and level of service, amount of benefits, etc. The State also controls the levels of funding participation for these mandated programs Counties have virtually no ability to control the cost of these state dictated mandates. According to NYSAC, over the next several years the State will implement state tax rebate check programs and tax breaks for select special interest groups and industrial sectors, not including STAR, that will exceed $3 billion on an annual basis none of which will actually reduce any homeowner s or small businesses property tax bills. New York State has required county taxpayers to finance with local property taxes dozens of state mandated programs that, for the most part, other states do not finance through property taxes. We believe that one of the best ways to improve New York s economic climate and competitiveness is to not just to slow the rate of growth in property taxes, but to actually lower them from today s levels.we believe that aligning the cost of the state s mandated programs with the State Government, that defines and controls them, will result in an historic and sustainable reduction in county property taxes and create a more appropriate and equitable distribution of program costs. Combined, the following ten mandated programs make up 83.48% of the tentative County tax levy for 2018 compared to 84.69% in 2017.

33 CHENANGO COUNTY MEDICAID COSTS $10,400,000 $10,300,000 $10,200,000 $10,100,000 $10,000,000 $9,900,000 $9,800,000 $9,700,000 $9,600,

34 CHENANGO COUNTY TEMPORARY ASSISTANCE FOR NEEDY FAMILIES COSTS $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $

35 CHENANGO COUNTY SAFETY NET COSTS $900,000 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $

36 CHENANGO COUNTY CHILD WELFARE COSTS $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $

37 CHENANGO COUNTY INDIGENT DEFENSE COSTS $510,000 $500,000 $490,000 $480,000 $470,000 $460,000 $450,000 $440,000 $430,

38 CHENANGO COUNTY PRESCHOOL EDUCATION AND EARLY INTERVENTION COSTS $1,150,000 $1,100,000 $1,050,000 $1,000,000 $950,000 $900,000 $850,

39 CHENANGO COUNTY PROBATION COSTS $390,000 $385,000 $380,000 $375,000 $370,000 $365,000 $360,000 $355,000 $350,000 $345,000 $340,

40 CHENANGO COUNTY CORRECTIONAL FACILITY COSTS $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $

41 CHENANGO COUNTY NYS RETIREMENT FUND COSTS $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $ EST

42 COMMUNITY COLLEGE CHARGEBACKS General Charges EST PER 2018 EST BUDGET High School Charges